Too Rich For A Budget

I have a budget.

And I enjoy my budget.

And I really like tracking my spending, getting great deals, improving our financial situation and making progress because I have a financial roadmap. But there are some out there who don’t find any value with all the hassle it takes to log into Mint.com and look at where their money is going. I mean, seriously, 5 minutes is a CRAP LOAD of time, and it can’t be wasted getting a snapshot of my entire financial picture so I can make sound financial decisions!!! What a waste. My time is just too valuable for that.

This one’s for you.

Too Rich For A Budget

Budgeting takes some emotional maturity. I mean, first of all, you have to acknowledge that your head isn’t a ledger and your mind doesn’t contain a detailed aggregation of your entire financial life. You also need to realize that no matter how much money you have, you might possibly be wasting it. And you also need to know that your spending might be downright ugly. It’s tough to sometimes face those realities. Budgets are financial mirrors, and they show every wrinkle and crease in your old, saggy spending habits. Can you handle that?

If not, don’t worry, you’re probably too rich to have to worry about this stuff anyway. I mean, who cares if you’re leaking hundreds a month out of your accounts like a backed up toilet. Just let that crap spill everywhere, mop it up and throw it away. Doesn’t matter where it goes after that, because those dollars didn’t have a purpose.

So continue enjoying life, because budgets are buzz-kills. You make money so you must know what you’re doing with it. Don’t let those lame financial nerds be all like “get on a budget” or “invest your money”. That crap do they know?

The Problem

You’ve got money, you’re saving some and your net worth is growing. By all accounts, you’re moving in the right direction. A budget is just a cramp in your style. Why fix it if it ain’t broke?!

But here’s the problem. You’re working too hard to NOT have a budget! If you make good money, why in the world would you NOT plan every hard-earned dollar that leaves your hands? How much is your time worth again? If you keep leaking hundreds or even thousands of dollars per month, you are wasting something MUCH more valuable than money. You are wasting TIME!

Say your time is worth $50 an hour. That’s over $100,000 per year if you’ve got full-time hours. Your job is high-profile or very technically challenging, you definitely earn every one of those $50 per hour. Why would you waste those hours on a bunch of untracked spending and waste? For every $50 you spend that you don’t really know where it goes, you have to slave away one more hour at the office. I mean, you could be working 3 or 4 unnecessary days per month because you don’t have a budget to tell your money where to go! Get over the mental hurdle of wasting time on a budget and realize you are wasting MUCH more valuable time by NOT having one.

The Solution

Everyone needs a budget. Of that I am convinced. Not every budget looks the same, and people all have different financial plans. But if you don’t start somewhere, you won’t really go anywhere. If you don’t set goals, then what are you doing with your life?

Comments

My brother and sister-in-law are “too rich for a budget.” I think they make almost 200K now (in Indiana where it’s super cheap to live) and they spend every penny of it. And, they keep making more so they don’t see the problem!Holly@ClubThrifty recently posted..Cash Money: $6,350 in September Income and Blog Updates

As a financial counselor I heard similar refrains from people who were definetely not ‘too rich’ for a budget. But they’d say things like ‘I don’t want to become one of those people who track every penny and don’t enjoy life.’

I told them that if they didn’t budget and track thier spending they are showing a lack of commitment to themselves, their spouse, and thier family. You need to know that every dollar spent is going to something necessary; otherwise, it’s just delaying your dreams and the dreams of your family.

Tracking every penny and enjoying life are not mutually exclusive. I’d argue that NOT tracking your money and making a budget plan is making you enjoy your life LESS. I have have MUCH more fun since I got on a budget!

That was awesome Jake, couldn’t have said it better myself. I read the first paragraph out loud to my wife because I couldn’t stop laughing. It’s true, budgeting doesn’t take long at all and it can’t be done in our heads. I don’t know many successful businesses that can pull off accounting without an accountant. do you? Our financial picture is similar to that of a business. If we want to be successful we need to know where the money is going, how much we are making and where we need to improve. It’s not something I can do in my head nor ever plan to try. Have a great day mate… cheers! CBBcanadianbudgetbinder recently posted..Bust our budget September 2013: Free Canadian Budget Binder Budget Spreadsheet

I agree with you. The spate of celebrity bankruptcies go to show that money management and budgeting are more important than a high income in building long term wealth.moneystepper.com recently posted..Free competitions – how much can you earn?

I love that part at the end about budgeting saving you time. I’ve never thought about it like that but you’re spot on. Really cool way of thinking about it.Matt Becker recently posted..Staying Safe With DIY Car Repairs

Budgets are key to reaching your goals, especially the big ones like buying a house, car, college for kids or other large purchases.Lance @ Money Life and More recently posted..How Much Money Is Enough Money?

I may be an anomaly, but I do not have a traditional budget! Don’t misunderstand, I recognize that a budget is the structure to help you reach your financial goals. I just approach it differently because I am a former CFO. I set my goal of maxing out retirement savings and set up a payroll deduction and live on what is left. I constantly review my expenses and make adjustments accordingly. I already achieved my financial freedom, but set new goals.krantcents recently posted..Helping Your Parents Manage Their Finances

You are definitely miles ahead of the target audience of this post. You literally are living on the leftover money after your savings goals, which is a pretty AWESOME budget plan! This was for those who couldn’t be bothered to look at their financial picture and figure out where they could possibly be wasting, but instead just resolve to “get there someday” with more hard work. You have a plan, they do not. I commend your financial discipline, a great example to us all here!

You can never be too rich for a budget, especially if you want to remain that way. I never see money as a steady fixture in my life, I know that no matter how good my financial standing is at the moment, there is always that possibility that it will not always remain that way and I need to prepare for that. So, if you’ll ask me if I still need to have a budget if my income becomes more than I can spend… I do.Beat The 9 to 5 recently posted..My Monthly Income Stream Report – September 2013

Oh, excellent points!!! The only times I have ever wanted to stop budgeting is when I was being naughty financially – budgets show you everything. Luckily, I haven’t stopped. So I do have records of some pretty naughty months that shocked us into being way better for months at a time!Crystal @ Prairie Ecothrifter recently posted..Living Off the Land – My First Paw Paw

I’ll go ahead and disagree with you. Like krantcents, we don’t have a budget. Just because we don’t doesn’t mean we don’t have a handle on where our money is going. We set savings targets.
Also, I found mint to be inaccurate and a PITA. They were always missclassifying things as interest charges or bank fees and then trying to sell me other products.

You are definitely ahead of most without a budget. You have set goals, and you make sure to hit them. The only way to do that is to direct your money where you want it to go. Which means you’ve got a budget! 🙂

Mint takes a little massaging, but is a GREAT snapshot of where were are at any time, and allows us to make plans based on our entire financial picture. I also love their net worth tracking 🙂

I certainly agree with your assertion of everyone needing a budget of some kind. Am one of those people who have learnt a hard lesson by not properly budgeting earlier in life. You look back and see the waste and start imagining just how far you’d have been financially if you had just budgeted!
Then again, when you hit on hard times, epiphanies hit you like a summer’s dawn.Simon @ Modest Money recently posted..Motif Investing Review

Meet Jacob

I'm a husband, father, and budget nerd who loves taking complex financial problems and breaking them down into a simple, easy-to-follow financial plan. It all started after getting engaged over 6 years ago... Read More…

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Information presented on iHeartBudgets is intended for informational purposes only and is not meant to be taken as financial advice. While all attempts are made to present accurate information, it may not be appropriate for your specific circumstances and information may become outdated over time. I am not a personal finance professional and you should seek out a professional before making any financial decisions.